PCC Decision Making & Problem Solving 2 — Questions and Answers
Question 1: A project manager must choose between two cost-reduction strategies with uncertain outcomes. Which decision-making tool best quantifies the expected value of each option?
- Decision tree analysis (Correct answer)
- Pareto chart
- Fishbone diagram
- Control chart
Correct answer: Decision tree analysis
Decision tree analysis calculates expected monetary value (EMV) by multiplying probability and impact for each branch, enabling objective comparison of uncertain options.
Question 2: During a cost performance review, the CPI drops to 0.82. What is the most appropriate first step for the project controls team?
- Immediately escalate to the sponsor
- Perform root cause analysis to identify the source of cost overrun (Correct answer)
- Revise the project budget baseline
- Issue a stop-work order
Correct answer: Perform root cause analysis to identify the source of cost overrun
Root cause analysis identifies the underlying driver of the unfavorable CPI before any corrective action or escalation is taken.
Question 3: Which problem-solving approach is most appropriate when a project faces a recurring variance that defies initial corrective actions?
- 5 Whys technique (Correct answer)
- Monte Carlo simulation
- Earned value recalculation
- Schedule compression
Correct answer: 5 Whys technique
The 5 Whys technique iteratively drills down to the root cause of persistent problems by asking 'why' at each level of symptom.
Question 4: A project controls team must prioritize three unresolved issues with limited resources. Which analytical method ranks issues by their relative impact frequency?
- Pareto analysis (Correct answer)
- Sensitivity analysis
- Monte Carlo simulation
- Trend analysis
Correct answer: Pareto analysis
Pareto analysis (80/20 rule) ranks issues by frequency or impact, allowing teams to focus resources on the vital few problems causing most of the harm.
Question 5: When evaluating corrective actions for a schedule delay, a project controls professional should FIRST consider which factor?
- The corrective action's cost relative to the delay's impact (Correct answer)
- Stakeholder preference
- Historical data from similar projects
- Current team availability
Correct answer: The corrective action's cost relative to the delay's impact
Evaluating cost versus impact ensures the corrective action is economically justified and proportionate to the problem being addressed.
Question 6: In a structured problem-solving session, a team uses a cause-and-effect diagram. Which category would 'inadequate training' fall under?
- People (Correct answer)
- Process
- Equipment
- Environment
Correct answer: People
Cause-and-effect (Ishikawa) diagrams categorize causes under standard headings; 'inadequate training' relates to the People category.
Question 7: A project team is analyzing two risk response strategies. Strategy A has a 60% chance of saving $100,000; Strategy B has a 40% chance of saving $200,000. Which strategy has the higher EMV?
- Strategy A with EMV of $60,000
- Strategy B with EMV of $80,000 (Correct answer)
- Both strategies are equal
- Strategy A with EMV of $80,000
Correct answer: Strategy B with EMV of $80,000
Strategy B's EMV = 0.40 × $200,000 = $80,000, which exceeds Strategy A's EMV of 0.60 × $100,000 = $60,000.
PCC Decision Making & Problem Solving 2
A project manager must choose between two cost-reduction strategies with uncertain outcomes.
Which decision-making tool best quantifies the expected value of each option?